ANA Revised Forecast

24th Feb 2003

TOKYO, February 24, 2003 - ANA (All Nippon Airways Co., Ltd., TSE9202) today issued revisions to its consolidated and non-consolidated forecasts for FY2002 (April 1, 2002 - March 31, 2003). The revised forecasts replace those originally announced when the results for the first half of FY2002 were reported on November 22,2002.

Due to the decrease in domestic passenger revenue caused by severe fare competition and the cost of increased sales promotion to raise demand, ANA’s consolidated operating revenues are expected to be ´1,225 billion (previously forecasted ´ 1,230 billion, as of November 22. 2002), and its operating loss will deteriorate to ´ 4 billion (previously forecasted operating ´ 15 billion income).

Concurrent with the issue of its revised FY2002 forecasts, ANA today announced its cost reduction plan for FY2003 - FY2005 (April 2003 - March 2006).

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“We should focus on tackling cost reduction, rather than expecting increased revenue in the recent financial environment of decreased demand and continued deflation,” Executive Vice President Yasushi Morohashi, in charge of both finance and public relations, said. “We should be able to cut annual operating expenses by ´30 billion over the next three years”. “We will aim at decreasing personnel costs by ´20 billion, and should realize a further decrease of ´10 billion by downsizing aircraft and cutting airport handling costs” he continued.

Based on this three-year cost reduction plan, ANA will cut its retirement and pension benefits by around 10%. Agreement already has been reached on the cut with the ANA Workers Union, representing ground personnel and cabin attendants, and talks are now underway with the ANA Crew Association (cockpit crew union).

ANA also plans to decrease the number of employees by 1,200 mainly through further improvement of productivity.